Visionary Completes Controlling Stake in Sikang Health Industry Joint Venture Platform, Deepening Global Layout of TCM Health Preservation

Rhea-AI Summary

Visionary (Nasdaq: GV) completed an equity adjustment on Oct 17, 2025 and obtained a 51% controlling stake in Sikang (Guangzhou) Health Industry Investment, turning a prior strategic cooperation into capital-driven control.

The move aims to combine Visionary's global capital channels with Guangzhou Sikang's TCM operating ecosystem to scale standardized TCM health preservation services domestically and internationally, including September 22, 2025 market entry in Malaysia and an October 7, 2025 Panyu cooperation conference with over 200 partners.

Forward-looking risks cited include changes in global demand, cross-border compliance adjustments, intensified competition, and potential operational inefficiencies.

Positive

• Acquired 51% control of joint venture on Oct 17, 2025
• Launched initial Malaysia expansion on Sept 22, 2025
• Held Panyu cooperation conference on Oct 7, 2025 with 200 partners

Negative

• Cross-border compliance adjustments could hinder expansion
• Intensified industry competition may pressure margins
• Potential for lower-than-expected joint venture operating efficiency

Insights

Global Health M&A Analyst

Visionary took control of a TCM joint venture, enabling capital-led global expansion while regulatory and execution risks remain.

Visionary acquired a 51% controlling stake in the Joint Venture on October 17, 2025, switching the relationship from strategic partner to majority owner.

The business mechanism pairs Visionary's global capital and channel access with Guangzhou Sikang's domestic operating model, education pipeline, and standardized service framework. This structure supports dual-track growth: deeper domestic rollout and initial Southeast Asia expansion noted on September 22, 2025 and partnership scaling after the October 7, 2025 ecosystem conference.

Key dependencies include cross-border compliance, localized partner execution, and the Joint Venture's ability to standardize services at scale. The press release explicitly lists regulatory adjustments and operating efficiency as material risks, so near-term outcomes hinge on compliant market entries and repeatable store rollouts.

Watch for concrete milestones over the next 12–24 months: regulatory approvals for foreign operations, signed local franchise or investment agreements in Malaysia, and measurable service standardization metrics. These items will determine whether the acquisition translates into the stated long-term shareholder value.

TORONTO, Oct. 17, 2025 /PRNewswire/ -- Visionary Holdings Inc. (Nasdaq: GV, hereinafter referred to as "Visionary" or the "Company"), a Nasdaq-listed enterprise, announced today that it has completed the equity adjustment of "Sikang (Guangzhou) Health Industry Investment Co., Ltd." (hereinafter referred to as the "Joint Venture Company"), a joint venture established with Guangzhou Sikang Investment Holding Co., Ltd. (hereinafter referred to as "Guangzhou Sikang"), and officially obtained a 51% equity stake to take control of the Joint Venture Company. This transaction marks a key step in Visionary's strategy of "global high-quality industry investment," aiming to leverage the synergy between capital and industrial resources to promote standardized services and global expansion in the TCM (Traditional Chinese Medicine) health preservation sector, laying a foundation for the Company's long-term business growth and enhancement of shareholder value.

I. Deepened Strategic Synergy: A Logical Closed Loop from Cooperation to Controlling Stake

As an enterprise deeply engaged in the TCM health preservation sector, Guangzhou Sikang has long been guided by the mission of "revitalizing TCM and inheriting the quintessence of Chinese culture." It has built an industrial ecosystem centered on three core pillars: "professional talent education and training," "standardized brand chain expansion," and "intelligent industrial resource trading," and has developed a mature operational model for the standardization and large-scale implementation of TCM health preservation services.

Based on its judgment of the long-term value of the TCM health preservation track and recognition of Guangzhou Sikang's business foundation, Visionary signed an investment agreement with Guangzhou Sikang in December 2024 to jointly establish the aforementioned Joint Venture Company, initially establishing a strategic cooperation framework. After the completion of this equity adjustment, the cooperation between the two parties has evolved from "strategic synergy" to an in-depth integration model of "capital empowerment + industrial collaboration." Through its controlling stake, Visionary will further integrate its global capital channels, cross-border resource connection capabilities, and Guangzhou Sikang's industrial operation experience to drive the systematic global layout of the Joint Venture Platform in the TCM health preservation sector.

II. Business Support for the Joint Venture Platform: Dual-track Progress in Domestic Deepening and International Expansion

Prior to the equity adjustment, Guangzhou Sikang had already achieved phased progress in both "localized operation" and "international exploration" of its TCM health preservation business, providing a business foundation for the subsequent development of the Joint Venture Platform:

1.Initial Expansion into the Southeast Asian Market: On September 22, 2025, relying on the international communication platform of the "Miss & Mrs. Gaia World Pageant Finals," Guangzhou Sikang introduced core TCM products and services such as moxibustion and head therapy into the Southeast Asian market. Currently, this business has received support from local partners in Malaysia, with the first batch of cooperative investments successfully landed. Plans are underway to operate "moxibustion and head therapy chain stores integrated with local cultural characteristics" in Malaysia, exploring a "localized adaptation model for cross-border TCM health services."

2.Upgraded Domestic Channel Synergy: On October 7, 2025, Guangzhou Sikang held the "TCM Health Preservation Ecosystem Cooperation Conference" in Panyu, Guangzhou, gathering over 200 core partners in the large health industry nationwide. The conference not only served as a platform for sharing cutting-edge health preservation technologies and concepts but also deepened channel cooperation through a "platform-based empowerment" model, injecting new impetus into the domestic business expansion and the implementation of service standardization for the Joint Venture Platform.

III. Strategic Value and Shareholder Returns: The Long-term Logic of Capital-Industry Resonance

Regarding this controlling stake transaction, Visionary's management stated: "As an important segment of the global large health industry, TCM health preservation has long-term growth potential. Guangzhou Sikang's localized operation capabilities and international exploration direction in this sector are highly aligned with Visionary's core strategy of 'focusing on global high-quality industries and creating sustainable shareholder value.' After taking control, the Company will empower the Joint Venture Platform in three aspects: first, providing compliant capital support to ensure business expansion meets domestic and foreign regulatory requirements; second, connecting Visionary's global industrial channels to facilitate the cross-border implementation of TCM health preservation services and products; third, integrating technologies and resources to promote service standardization and scaling, striving to build the Joint Venture Platform into a compliant operation carrier for the globalization of TCM health preservation."

It is disclosed that after the completion of the equity adjustment, the Joint Venture Platform will explore a collaborative model of "TCM health preservation service operation + cross-border industrial resource integration + compliant dissemination of traditional culture" within a regulatory framework. On one hand, it will meet the health needs of global consumers through a standardized service system; on the other hand, it will promote the international recognition of TCM health preservation concepts through compliant cultural dissemination channels. Ultimately, this will help Visionary build a dual growth curve of "industrial investment + business operation" and create long-term value for shareholders.

IV. Risk Factors

This press release contains "forward-looking statements" as defined in Section 27A of the U.S. Securities Act of 1933 (as amended) and Section 21E of the U.S. Securities Exchange Act of 1934 (as amended), including but not limited to statements regarding the business plans of the Joint Venture Platform, the progress of TCM health preservation globalization, and the potential impact on the Company's shareholder value. Forward-looking statements are based on current expectations and assumptions and are subject to various risks and uncertainties, which may cause actual results to differ materially from the forward-looking statements. Relevant risk factors include: changes in global demand for large health markets, adjustments to cross-border business compliance and regulatory policies, intensified industry competition, and lower-than-expected operating efficiency of the Joint Venture Platform. Investors should carefully evaluate these risks and should not rely on forward-looking statements as a basis for investment decisions.

About Visionary Holdings Inc. (Nasdaq: GV)

Visionary Holdings Inc. (Nasdaq: GV) is a Nasdaq-listed company focused on global high-quality industry investment. It is committed to deploying in segments with long-term growth potential through capital integration, resource connection, and compliant operations to create sustainable value for global shareholders. The Company has always adhered to domestic and foreign regulatory requirements, attached importance to investor relations management, and safeguarded investors' right to information through regular information disclosure and transparent communication.

View original content:https://www.prnewswire.com/news-releases/visionary-completes-controlling-stake-in-sikang-health-industry-joint-venture-platform-deepening-global-layout-of-tcm-health-preservation-302586599.html

SOURCE Visionary Holdings Inc.

FAQ

What did Visionary (GV) announce on Oct 17, 2025 about Sikang?

Visionary announced it obtained a 51% controlling stake in Sikang (Guangzhou) Health Industry Investment on Oct 17, 2025.

How will the GV acquisition affect TCM international expansion timelines?

The company said it will use Visionary's global channels to scale TCM services; international steps include a Sept 22, 2025 Malaysia initiative.

What domestic partnership progress supports GV's Sikang platform?

A TCM Health Preservation Ecosystem Cooperation Conference on Oct 7, 2025 in Panyu gathered over 200 core partners to deepen channel cooperation.

What key risks did Visionary (GV) disclose related to the Sikang transaction?

Disclosed risks include cross-border compliance changes, industry competition, variable global demand, and possible lower operating efficiency.

Will the Sikang joint venture be operated under regulatory compliance?

Visionary said it will provide compliant capital support and pursue operations within regulatory frameworks for domestic and cross-border activities.